Xiamen Tungsten plans to spend nearly 400 million yuan to acquire two companies

Source: Taiwan Strait Network

Taiwan Strait Network, March 25 — (Reporter Wu Qiang) Xiamen Tungsten (600549) announced on March 24 that the company plans to invest 128.20302 million yuan to acquire a 30% stake in Jiujiang Dadi Mining Development Co., Ltd. (referred to as “Jiujiang Dadi”) held by related party Jiangxi Jutong Industrial Co., Ltd. The company also plans to invest 166.663926 million yuan to acquire a 39% stake in Jiujiang Dadi held by non-related party Beijing Shangdaxin Investment Co., Ltd. The total proposed investment is approximately 295 million yuan to acquire a 69% stake in Jiujiang Dadi.

After the transaction is completed, Xiamen Tungsten will become the controlling shareholder of Jiujiang Dadi Mining, which will be included in the company’s consolidated financial statements. Currently, within the scope of Jiujiang Dadi Mining’s mining rights, the resource reserves contain approximately 49,900 tons of WO_3 metal and 73,000 tons of Mo metal.

Meanwhile, to promote the company’s diversification strategy for cutting tools and enhance its R&D and manufacturing capabilities for high-performance tap and die tools, Xiamen Tungsten’s subsidiary Xiamen Jinlu Special Alloy Co., Ltd. plans to invest 104 million yuan to acquire a 70% stake in Yuanzheng (Xiamen) Precision Tools Co., Ltd. (referred to as “Yuanzheng Precision”) held by individuals Gong Xing and Yao Aiping. After the transaction, Jinlu will become the controlling shareholder of Yuanzheng, which will be included in the company’s consolidated financial statements.

Xiamen Tungsten stated that as the company’s tungsten industry chain, especially the downstream processing and application fields such as cemented carbide, cutting tools, and tungsten wires, continues to expand capacity, the company’s demand for tungsten resources is increasing year by year. The above transactions will help the company increase resource reserves, improve raw material self-sufficiency, reduce raw material procurement risks, and ensure stable production and operations. The transaction was approved by the company’s Board of Directors, Audit Committee, and a special meeting of independent directors on March 24, and does not require shareholder approval.

In addition, to focus on core businesses such as tungsten-molybdenum, rare earths, and new energy materials, and optimize resource allocation, Xiamen Tungsten plans to publicly transfer its 25% stake in Suzhou Aizhi Gaosi Electric Co., Ltd., with a listing minimum price of 172 million yuan.

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【Source: Taiwan Strait Network】